Joint-Stock Companies Turned Out to Be Poor Ways to Finance

question 100

Multiple Choice

Joint-stock companies turned out to be poor ways to finance colonies because

• A) taxes on the profits of such companies were excessive.
• B) new colonies do not immediately return a profit to investors.
• C) the number of people who could invest in such companies was limited by English law.
• D) the English government insisted on controlling day-to-day operations of these companies.

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Definitions:

Selling Expenses

Costs incurred directly and indirectly from selling a product or service, including sales commissions, advertising, promotional materials, and the salaries of sales staff.

Budgeted Net Income

The estimated net income a company expects to earn over a specific period, as outlined in its budget.

Cash Budget

A financial plan that estimates cash inflows and outflows over a specific period, often used to assess whether a company has sufficient cash to fulfill its operations and obligations.

Budgeted Disbursements

Planned cash outflows for a specific period, including expenses, investments, and other payments.